Bankinter EE.UU. Nasdaq 100 This is the index fund which has offered the highest compound annual growth in the last 3 years, as it did so at 20.71%. Invests 100% in large market capitalization US equities. The index it uses as a reference is the Nasdaq 100.
we have another Amundi SP 500 ESG which, as its name indicates, uses the S&P 500 ESG as a reference index, which is composed of the same stocks as the S&P 500, excluding companies that are classified according to environmental, social, and good corporate governance standards. Do not conduct your business. principle, called the ESG Criteria. Its compound annual return in the last 3 years is 18.38%.
iShares, Blackrock’s ETF and index fund platform, ranked third and fourth on the list.
iShares North America Equity Index achieves an annualized rate of return of 18.00% over the past 3 years, with reference to MSCI North America, an index designed to measure the performance of the large and mid-cap segments of the markets in the United States and Canada, having more is broader than the S&P 500 because it is made up of 713 components
next we have iShares US IndexWhich has an annualized rate of return over the past 3 years of 17.97% and which takes the S&P 500 as a reference.
in the fifth place we get Vanguard US 500 Stock IndexAlso refers to the S&P 500 and with an annualized return of 17.74% over the last 3 years.
What is Index Fund?
An index fund is an investment fund whose investment policy is based on replicating the behavior of an index, which they use as a reference.
Therefore, the portfolio of this fund can be made up of assets that appear in the said index, or by derivative instruments that take the mentioned index as the underlying as a reference. An example of this would be index futures.
They are also called passively managed funds, as the method of management is not active; Their portfolio behaves and is built according to the parameters of the index they have taken as a reference, with no further action required.
In general, index funds have significantly higher returns and often outperform actively managed funds.
Regarding the growth of indices, the NASDAQ 100 is up 17.37% against the dollar so far this year, and 14.94% taking the euro as a reference. The S&P 500 is up 7.41% and 5.18%, respectively, while the Dow Jones gains 0.46% this 2023 with the dollar as the reference, but falls 1.62% in community currencies.